Improving Embedded Test Value ROI Is King! Ian F. Smith Newell & Budge Ltd.
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1 Imprving Embedded Test Value ROI Is King! Ian F. Smith Newell & Budge Ltd.
2 Imprving embedded test value ROI is King!! Ian F. Smith 30 Nvember 2005 EurSTAR 2005 Cpenhagen, Denmark Cpyright 2005 Seven Layer Cmmunicatins Ltd Slide 2
3 Outline Embedded Trends and Testing Issues What is ROI? Business Case + Value Embedded Test ROI Mdels ROI Example + Case Study Summary Cpyright 2005 Seven Layer Cmmunicatins Ltd Slide 3
4 Half the mney I spend n advertising is wasted, the truble is I dn't knw which half. Jhn Wanamaker ( ) Cpyright 2005 Seven Layer Cmmunicatins Ltd Slide 4
5 Embedded Trends Market Technlgy Mre diverse prduct applicatins Shrter timescales Tighter margins (=> cst/resurce pressure) Technical diversity Cnnectivity Embedded Devices Systems Mbile/wireless M2M Greater cmplexity and scale Cpyright 2005 Seven Layer Cmmunicatins Ltd Slide 5
6 What s the Prblem? - Test Value Issues Pressure Cst Quality Resurcing Harder t test Technical skills/diversity Defects getting thrugh Custmer satisfactin Time-T-Market Diversity Technlgies Skills Increasing cst f testing Scale f develpments Cmplexity Requires business level investments We need t shw the value f test At the business and technical levels Business case - vital Cpyright 2005 Seven Layer Cmmunicatins Ltd Slide 6
7 Why Invest in Testing? Cmpetitive Advantage Operatinal Benefits Save mney Imprve Quality Address Prblems/Issues Imprvements Maintenance Certificatin/Regulatin Build cnfidence/reduce risk Cpyright 2005 Seven Layer Cmmunicatins Ltd Slide 7
8 --- Value ---> ROI - An Overview What is ROI? Return On Investment ROI = (Benefit - Cst) Cst Prfit related t Cst Why is it imprtant? Measure f value f prpsed investment Supprts business case ROI is nt static: Varies ver time Can imprve if wider scpe is fund Investments --- Time ---> Cpyright 2005 Seven Layer Cmmunicatins Ltd Slide 8
9 -- Value --> -- Cst --> ROI - An Overview (2) ROI Mdel Different Types Timescale Initial Investment Maintenance Expenditure Cst f investment One-ff -vs- Lng-term Hey, we re testers! -- Time --> Validate Mdel Initial Value Changes Value f investment (withut maintenance) Test Assumptins Want an ROI? Start Measuring -- Time --> Cpyright 2005 Seven Layer Cmmunicatins Ltd Slide 9
10 Investments - a quick lk Desired utcmes Ecnmic benefits - lwer csts Better perfrmance, capacity, accuracy/reliability Better defect detectin What kind f investments add value Infrastructure Peple [Free up time] [Skills/knwledge] Why investments dn t always wrk T little/t much Pressure Skills [Lack f] Plitics/culture [Negative] Unrealistic expectatins Hw d we pick the right investments? There is n silver bullet n this ne! Crystal Ball Sme investments are nt planned Cpyright 2005 Seven Layer Cmmunicatins Ltd Slide 10
11 What are the best investments? Deliver very high ROI Lw cst and/r high return Deliver value thrughut lifecycle Deliver value at mre than ne level Business, peratinal r technical Managed risk -vs- return Can t always tell which investments will be mst successful! Cpyright 2005 Seven Layer Cmmunicatins Ltd Slide 11
12 Invest in what? Lts f things: Sftware Hardware Firmware/FPGA Test Infrastructure Facilities + supprt infrastructure Tls + supprt sftware Embedded Supprt Peple Hardware/FPGA/ASIC dependencies Thught - time/space fr imprvements Cpyright 2005 Seven Layer Cmmunicatins Ltd Slide 12
13 Building the Business Case Getting the right need / need right Mdel The same investment can deliver very different ROIs Depends n mdel (fr csts and value/return) Buy -vs- Make Strategic -vs- tactical Nthing succeeds like success Create track recrd f achievement Measure results Cpyright 2005 Seven Layer Cmmunicatins Ltd Slide 13
14 Building Value - Example Firmware Test ROGE A ROGE B dgenux dgen System Test In fr the lng haul Investment Befre After Key Benefits Building n earlier investments dgenux 1-5 chans 128 byte data GP-IB Cntrl 64 chans 128Mbyte data LAN Cntrl Capacity Strategic value dgen 2 stage prcess HDLC data nly 1 stage prcess HDLC + ATM Better Data Better CM Reuse prduct H/W fr test ROGE <40 links ttal >200 links/lab Reliability A Unsynch d replay Intrusive Synch d replay Nn-intrusive Better Sim Lwer cst ROGE B HDLC data nly Added ATM Suppprt new netwrks Cpyright 2005 Seven Layer Cmmunicatins Ltd Slide 14
15 Design fr Test ROI Builds test int the prduct Architecture Interfaces Supprts testing at different stages QuickTime and a QuickTime and a TIFF (LZW) decmpressr are are needed t see t this see picture. this picture. QuickTime and a TIFF (LZW) decmpressr are needed t see this picture. Csts Benefits Risks Return (Value) Dev Interfaces Supprt Funcs Arch Updates Better test cverage Lwer Test Cst/Effrt Shrter develpment Added cmplexity Distractin fr develpers Imprved quality Better diagnsis Test ver lifecycle [O,B] [T,O] [T,O,B] Cpyright 2005 Seven Layer Cmmunicatins Ltd Slide 15
16 Autmated Testing ROI Test autmatin allws engineers t be mre prductive Allws mre rutine testing Csts Benefits Risks Return (Value) Autmatin Tls Shrter test time Technical issues Reduce manual effrt [O,B] Training Test Develpment Mre tests/engineer/day Earlier defect detectin Right autmatin apprach First time slwer Imprve test cverage [T,B] Imprve test capacity [O,B] Regressin Test [T,O] Cpyright 2005 Seven Layer Cmmunicatins Ltd Slide 16
17 Simulatin ROI Prvides means t simulate embedded devices E.g n desktp PCs Can cver many areas + perate at different levels Ptential users: Develpers; Testers; Users; Marketing; Training Csts Benefits Risks Return (Value) Simulatin S/W Reduced hardware csts Technical issues Earlier testing [O,B] User Training Easy deplyment Effectiveness f emulatin/simulatin Wider availability Less hardware [T,O] [T,O,B] Supprt fr debug [T] Cpyright 2005 Seven Layer Cmmunicatins Ltd Slide 17
18 ROI Cmparisn Table Investment Cst Return ROI Risk Design Fr Test Lw-Med Med-High High Lw Autmatin Med Med-High Med-High Lw-Med Simulatin Med-High Med-High Med Med Reuse Lw-Med Med-High Med-High Lw Once yu have yur ROI mdels, yu can cmpare and target investments mre effectively Mnitr actual value/benefits t assess real ROI Use these t imprve ROI mdels fr future prpsals Cpyright 2005 Seven Layer Cmmunicatins Ltd Slide 18
19 Example - Test Autmatin ROI Backgrund: Mbile phne develper Lw tester/develper rati Limited autmatic testing Difficult t meet release schedule Prblems: Manually intensive Explsive grwth in releases Mre variants planned Csts Benefits Autmated tests; Hardware Imprve level f test resurce Returns Exec effrt; Capacity; Supprt effrt Imprve scalability f test capacity Meet planned needs with greater cnfidence Cpyright 2005 Seven Layer Cmmunicatins Ltd Slide 19
20 Case Study - System Test Tls Suite Backgrund: Telecms Mnitring System System test - expensive equipment Manual cnfiguratin and peratin Very limited netwrk simulatin - Traffic types - Links Prblems: Expensive Test system inflexible Manually intensive Difficult t autmate Unreliable peratin Limited scale Grwing issues in testing the system effectively Scale and cmplexity f planned netwrks - testing needed fresh apprach Cst-effective slutin needed fr explsin in test needs Investments led t series f tls building n previus achievements Cpyright 2005 Seven Layer Cmmunicatins Ltd Slide 20
21 Case Study - System Test Tls (cnt.) Slutin : Reuse prduct hardware fr test New tl, based n previus test sftware Scalable Flexible Cst effective + Outcmes/Benefits : Lwer cst (per link + verall) Better test cverage Better defect detectin Mre flexibility Imprved cnfidence System Test Infrastructure, built n wrk dne fr lwer level cmpnents Nw have ver 30 test labs - using the new apprach ROI: Average savings per lab: >$1m Lifetime ROI: >1000% Cpyright 2005 Seven Layer Cmmunicatins Ltd Slide 21
22 Summary Business case is increasingly vital - a strng ROI is essential Prduce strng mdel(s) fr ROI and test it/them The best investments deliver benefits at multiple levels Large systems favur a lnger term apprach t investments Small/ne-ff systems can benefit frm gd tactical planning Well thught-ut investments in test can generally deliver strng ROI but, be careful t use the right mdel and validate all assumptins Cpyright 2005 Seven Layer Cmmunicatins Ltd Slide 22
23 An investment in knwledge always pays the best interest. Benjamin Franklin ( ) Cpyright 2005 Seven Layer Cmmunicatins Ltd Slide 23
24 ? Any questins Cpyright 2005 Seven Layer Cmmunicatins Ltd Slide 24
25 The King is dead, lng live ROI. Ian F. Smith Seven Layer Cmmunicatins Ltd. Edinburgh, Sctland Tel.: +44-(0) Fax.: +44-(0) R1-1 Cpyright 2005 Seven Layer Cmmunicatins Ltd Slide 25
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